Friday, January 25, 2013

Papua New Guinea LNG project on schedule for 2014 startup

ExxonMobil's Papua New Guinea LNG plant is on schedule to start up and
ship its first LNG in 2014, Peter Botten, Managing Director of minority
project shareholder Oil Search, said at a conference Thursday. The 6.9 million mt/year, two-train LNG plant, supplied with feed gas
from three gas fields in the highlands and associated gas from existing oil
projects, will supply LNG to Japan's Tepco and Osaka Gas, Taiwan's CPC, and
China's Sinopec on long-term contracts, Botten said at the the LNG Supplies
for Asian Markets conference in Singapore. "We have not deviated from the schedule, we are still looking at a 2014
startup, and the operator (ExxonMobil) confirmed that they are still on
target," Botten said.
The key construction objectives this year will be on well drilling,
completion of the Hides gas plant, and the onshore pipeline. The Hides gas
conditioning plant will have capacity of 1 Bcf/day, and will be completed
later this year, Botten said.
The cost of the Papua New Guinea LNG project rose to $19 billion from
$15.7 billion, mainly due to exchange rate movements and work stoppages
related to community issues, ExxonMobil said in November.
Oil Search holds 29% in the PNG LNG project, while ExxonMobil holds
33.2% and Australia's Santos holds 13.5%. The remaining equity is held by the
government's National Petroleum Company of PNG (16.8%), JX Nippon Oil & Gas
Exploration Corporation (4.7%) and PNG landowner group Mineral Resources
Development Company (2.8%).

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